Ex-President Shahabuddin Named in Islami Bank Loan and Share Fraud Case

A report submitted by the Bangladesh Financial Intelligence Unit (BFIU) to the High Court has allegedly linked former President Mohammed Shahabuddin and his company, JMC Builders, to major loan and share irregularities involving Islami Bank Bangladesh PLC.

The report was filed following a writ petition by Islami Bank. On March 11, 2025, the High Court issued several directives, including restrictions preventing former members of the bank's board from leaving the country without court approval, freezing their bank accounts, and imposing a ban on the transfer of shares held by JMC Builders. The court also instructed the BFIU to investigate the allegations and submit its findings.
 

According to court records, the BFIU submitted its investigation report on October 29, 2025. However, the matter remained pending without a hearing for several months.
 

Lawyer Shishir Monir, representing the Islamic Economics Research Bureau, alleged that JMC Builders transferred approximately 81.92 percent of Islami Bank's shares through 24 affiliated companies. He claimed that Mohammed Shahabuddin served as JMC Builders' representative director on the bank's board from 2017 until his appointment as president in 2023 and approved the disputed share transfers during that period.

The petition seeks the restoration of the allegedly acquired shares to their original sponsor shareholders and legal action against those responsible for both the alleged share manipulation and loan fraud.

According to the petitioners, Bangladeshi banking regulations limit a single entity to holding a maximum of 10 percent of a bank's shares. They allege that S Alam Group and its affiliated companies acquired approximately 81.92 percent of Islami Bank's shares through fraudulent means, enabling them to secure loans amounting to around Tk225,000 crore. Of that amount, JMC Builders is alleged to have obtained approximately Tk80,000 crore through companies linked to the disputed share transfers.

The High Court is scheduled to hear the BFIU report and the related rule on Wednesday before the bench of Justice Mujibur Rahman Mia and Justice Rezaul Karim.

The allegations remain under judicial consideration, and no final court ruling has yet been issued regarding the claims.